- Silver initially fell during the trading session on Wednesday but found support in the form of the previous pennant marked on the chart.
- The market continues to see upward pressure, and silver captures some of the wealth preservation concerns currently present in the market.
- The $25 level is a large psychological figure that will be monitored closely by traders.
Short-term debts could be a good option for buying in the current market, as volatility is expected over the next few days due to the Federal Reserve and European Central Bank meetings and the upcoming employment figures from the United States. Economic data will influence traders, causing them to trade back and forth.
Assuming central banks' attitudes remain the same, silver will eventually find buyers on any debt. The market is likely to break above the recent high near the $26.50 level and reach the $27 level. The $27 level will be a barrier, but breaking above it opens up the possibility of a move toward $30 and beyond. If conditions do not change anytime soon, history has shown that once the market breaks above the $30 level, silver will likely make a run toward $50.
Buy on Each Dip
The market has shown resilience, and unless it breaks down below the 50-Day EMA, shorting silver is not recommended. It is advisable to follow the overall trend and buy small bits and pieces, taking advantage of dips in the market.
Ultimately, silver has found support after initially falling during the trading session on Wednesday. It continues to see upward pressure, and the $25 level is an important psychological figure. Short-term debts could be a good option for buying in the current market, considering the expected volatility over the next few days. Assuming central banks' attitudes remain unchanged, the market is likely to break above the recent high and reach the $27 level. Once the market breaks above the $30 level, a run toward $50 could be possible. Shorting silver is not recommended unless it breaks down below the 50-Day EMA. It is advisable to follow the overall trend and buy small bits and pieces, taking advantage of dips in the market.
Potential signal: I am buying silver on each dip. However, this is a dangerous market at the moment, and position sizing is crucial. On bullish action after all pullback to the sub-$25 level, I am a buyer, and aiming for $25.88.
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